Fraudulent Receipt of 600 Million Won in Vocational Training Subsidies... Prison Sentence Upheld on Appeal

False Claims for Work-Study Support Funds
Four Years and Six Months in Prison Upheld on Appeal

An employee of a shipbuilding company who embezzled hundreds of millions of won in government subsidies by exploiting the vocational education and training system has been sentenced to prison in the appellate trial as well. The court determined that fraudulent receipt of subsidies causes serious damage to national finances.

On August 4, the Gwangju High Court Criminal Division 2 (Presiding Judge Lee Euijoung) announced that it had upheld the original sentence of four years and six months in prison for employee A of the shipbuilding company, who was indicted on charges of fraudulent receipt of government subsidies by abusing the vocational education and training system (violation of the Subsidy Management Act, etc.).

For B, another official of the shipbuilding company who was indicted on the same charges, the first trial sentenced him to one year and six months in prison. However, the appellate court overturned this and instead sentenced him to one year and six months in prison with a three-year suspended sentence.

From the first half of 2021 to May 2023, A and others were brought to trial on charges of falsely registering trainees and fraudulently receiving 362.4 million won and 315.39 million won, respectively, in work-study support funds from the Ministry of Employment and Labor. They were found to have abused the system, which provides 400,000 won per month to each participating worker in work-study training, by falsifying documents and forging attendance records.

The court stated, "It appears that this caused a deterioration of national finances and prevented subsidies from being provided to those in need," adding, "However, in the case of defendant B, the court took into consideration that he made restitution exceeding the amount he gained from the crime."